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	<title>MarketingProfs Daily Fix Blog &#187; return on investment</title>
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		<title>Permission As an Email Marketing Engagement Strategy</title>
		<link>http://www.mpdailyfix.com/permission-email-marketing-strategy/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=permission-email-marketing-strategy</link>
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		<pubDate>Thu, 11 Feb 2010 13:59:20 +0000</pubDate>
		<dc:creator>Stephanie Miller</dc:creator>
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		<guid isPermaLink="false">http://www.mpdailyfix.com/?p=21555</guid>
		<description><![CDATA[Is it better to get permission up front for your email marketing program, or just beg for forgiveness later? 
The short answer is YES, of course it’s better to get permission. It’s always better to get permission.  Permission is the first step toward setting expectations, creating relationships and keeping data clean.  Permission is a subscriber engagement [...]]]></description>
			<content:encoded><![CDATA[<p>Is it better to get permission up front for your email marketing program, or just beg for forgiveness later? </p>
<p>The short answer is YES, of course it’s better to get permission. It’s always better to get permission.  Permission is the first step toward setting expectations, creating relationships and keeping data clean.  Permission is a subscriber engagement opportunity.</p>
<p><span id="more-21555"></span>However, it’s only a first step.  Permission does not give marketers a license to just send whatever, whenever.  In fact, more than just a one time exercise, permission must be re-earned with every message.  Lots of subscribers who gave permission unsubscribe or just ignore future messages.  They also complain (click on the Report Spam button), which depresses inbox placement for all campaigns. You can&#8217;t earn a response if you aren&#8217;t in the inbox.</p>
<p>What really matters is not that permission was granted, but that it is earned.  Adopting this attitude leads to decisions like:</p>
<ol>
<li>Sending only messages that have real value, at the time when they help subscribers most.  For example, sending newsletters every month on the third Thursday might be a fine strategy to just “stay visible,” but sending promotions on days <strong>when subscribers are ready to take action</strong> on timely deals is a better one.  Send more messages when a subscriber is “in market” (e.g.: just purchased, up for renewal, etc) and fewer when they are not.</li>
<li>Re-engaging with non-active subscribers before too much time goes by.  If the messages are not resonating, stop them, or <strong>offer to change frequency or content type.</strong></li>
<li>Preventing list churn and fatigue by moderating frequency. <strong>More messages are not welcome.</strong>  More messages that are valuable and relevant are welcome. </li>
</ol>
<p>I&#8217;m sure that advocacy of permission over forgiveness will take the wind out of a few readers&#8217; sails.  Permission requires a strong value proposition. It also means your file could be smaller.  That is more work for fewer records.  On the surface, it might sound like poor marketing strategy, but actually, it results in a better situation.  Subscribers who really want to be on your file are always going to be more engaged and return higher response and revenue. Lots of &#8220;sleepers&#8221; on the file only return somnambulant results. <strong> <em>Subscriber satisfaction and the resultant ROI is, after all, the whole point.</em></strong></p>
<p>Marketers might also consider that not every subscriber has to be subscribed for everything, or forever.  If you gather business cards at a trade show, for instance,  it’s not illegal to email them a single follow up note (or maybe 2-3) that thanks them, offers a nice treat and invites them to opt-in for your email newsletter.  Woo them rather than just assume they want to be on the file. Similarly for co-reg data or whitepaper download requests or sweepstakes.  Interest in a particular offer like these does not necessarily also mean ongoing interest in a newsletter or promotional offers.  Take time to nurture these prospects, rather than flood them with messages they didn’t ask for, and don’t really speak to their needs or interests.</p>
<p>I&#8217;d love to hear from folks who have adjusted permission rules and found good (or bad) results.  How are you thinking about permission as a strategic engagement tool, rather than a barrier to list size?</p>
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		<title>Give/Take Ratio</title>
		<link>http://www.mpdailyfix.com/givetake-ratio/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=givetake-ratio</link>
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		<pubDate>Tue, 23 Jun 2009 13:31:45 +0000</pubDate>
		<dc:creator>Len Kendall</dc:creator>
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		<description><![CDATA[There are countless conversations happening online. We&#8217;re beyond the point of brands knowing they need to join those conversations. They do. What they may not realize is that the longer they wait to jump in, the more work they&#8217;ll have to do before they can ask for customer&#8217;s business.

Since its modern inception, the internet has [...]]]></description>
			<content:encoded><![CDATA[<p>There are countless conversations happening online. We&#8217;re beyond the point of brands knowing they need to join those conversations. They do. What they may not realize is that the longer they wait to jump in, the more work they&#8217;ll have to do before they can ask for customer&#8217;s business.</p>
<p><span id="more-20566"></span><br />
Since its modern inception, the internet has been a resource for people looking for information. That hasn&#8217;t changed, but what has happened recently is the social web now gives various entities the opportunity to become thought leaders in a specific category. While some attain this status by consistently offering valuable information, many (especially in competitive categories) becomes leaders by guiding those who are searching.<br />
<span class="mt-enclosure mt-enclosure-image"><a href="http://www.mpdailyfix.com/give-take-ratio1.html" onclick="window.open('http://www.mpdailyfix.com/give-take-ratio1.html','popup','width=1189,height=817,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.mpdailyfix.com/assets_c/2009/06/give-take-ratio-thumb-400x274.jpg" width="400" height="274" alt="give-take-ratio.jpg" class="mt-image-center" style="text-align: center; display: block; margin: 0 auto 20px;" /></a></span><br />
To illustrate this point, rather than referencing some of the overused (albeit relevant) examples of Dell, Zappos, or Wine Library, I&#8217;m going to go local. If there&#8217;s one thing we have a lot of in Chicago, it&#8217;s pizza places. If someone told me the number of places in the vicinity was near 10,000 I would believe it.<br />
The point is, you&#8217;ve got a popular product that is available from a lot of different places. Pizza places make it very easy for you to find them when you&#8217;re looking, but do they try to help or interest you when you&#8217;re not? A fellow by the name of Ramon De Leon or <a href="http://www.twitter.com/dpzramon">DPZRamon</a> as most know him runs several Dominoes chains in Chicago. He also leverages social networks to connect with Chicagoans. He reaches out to consumers about local events, technology, and yes Pizza. There is no question, that among online influencers in Chicago, Ramon is the most well known pizza guy. I won&#8217;t go into deep detail about him, you can <a href="http://www.theharteofmarketing.com/2009/04/chicago-dominos-gets-social-media-right.html">get that here</a>.<br />
Right now, Ramon is fairly unique in Chicago, there aren&#8217;t many pizza chains in Chicago that also have such a well known personality. But what about the next pizza shop that jumps into the online conversation after Ramon? And the one after that? Will they be able to establish themselves as the same kind of resource to the local audience, and on the flip side, will they be able to reap the benefits of engaging in these social channels?<br />
The answer is yes, but what they have to realize is that they&#8217;re going to have to work much harder than Ramon. There&#8217;s already a &#8220;pizza guy&#8221; offering great conversation in Chicago so in order to have any chance of winning attention (and subsequently the opportunity to promote themselves) the next pizzeria is going to have to work longer and harder to earn the trust and ears of their potential customers. If they mimic Ramon but only use the channels to promote themselves, they will not see success.<br />
<strong>If you&#8217;re not the first thought leader in your category it&#8217;s ok but&ndash;</strong></p>
<blockquote><p>1. Start adding value among your potential community immediately. The longer you wait, the more of a head start your competition will have.<br />
2. Remember that adding value doesn&#8217;t mean only talking about things relevant to your product. People don&#8217;t always care about a product, but they do care about people (or a personable brand). Give them a reason to like you, and they&#8217;ll go to you when they need a commodity you offer.<br />
3. &#8220;Take&#8221; from the community very sparingly until the time is right. Remember there was someone before you who offers the same as what you&#8217;re offering however they may have already earned the right to ask for some help. Or they offer help/advice for free without &#8220;pitching&#8221; anyone.<br />
4. Leverage your brand equity from elsewhere. Some brands have a strong community before entering a social space. Transfer as much of that equity to the new space. There&#8217;s no reason to waste an investment.<br />
5. Don&#8217;t compare yourself to your peers when it&#8217;s not appropriate. If your competitor has been at it for two years, don&#8217;t expect to use their results as your own. Measure your progress against checkpoints in time you&#8217;ve set.<br />
6. Approach your potential community from a different angle. Just because you have a lot of competitors in social networks, it doesn&#8217;t mean your brand can&#8217;t become the expert in certain niche.
</p></blockquote>
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		<title>Return On Whatever</title>
		<link>http://www.mpdailyfix.com/return-on-whatever/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=return-on-whatever</link>
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		<pubDate>Tue, 07 Oct 2008 12:19:14 +0000</pubDate>
		<dc:creator>Steve Woodruff</dc:creator>
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		<category><![CDATA[Chick-Fil-A]]></category>
		<category><![CDATA[investment]]></category>
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		<category><![CDATA[ROI]]></category>

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		<description><![CDATA[In my last Daily Fix post (Marketing Swagger), one of the readers left a comment about whether or not business was transacted with a company that had provided a particularly useful bit of &#8220;swag.&#8221; I replied with a lighthearted retort about RoS (Return on Swag), but this conversation opens up a much bigger Pandora&#8217;s Box [...]]]></description>
			<content:encoded><![CDATA[<p>In my last <strong>Daily Fix</strong> post (<a href="http://www.mpdailyfix.com/2008/09/marketing_swagger.html">Marketing Swagger</a>), one of the readers left a comment about whether or not business was transacted with a company that had provided a particularly useful bit of &#8220;swag.&#8221; I replied with a lighthearted retort about RoS (Return on Swag), but this conversation opens up a much bigger Pandora&#8217;s Box &#8211; the whole <strong>Return on Whatever</strong> (RoW) compulsion.</p>
<p><span id="more-20194"></span><br />
<span class="mt-enclosure mt-enclosure-image"><img alt="ROIchart.jpg" src="http://www.mpdailyfix.com/ROIchart.jpg" class="mt-image-right" style="margin: 0pt 0pt 20px 20px; float: right;" width="205" height="140"></span> For years, we&#8217;ve had ROI (Return on Investment), which has been applied &#8211; with mixed success &#8211; to various endeavors. And I&#8217;m all for calculating a financial return on a specific investment &#8211; WHEN IT IS POSSIBLE to actually show that a specific endeavor led to a specific business result.<br />
The problem is, the RoW <em>mindset </em>can inhibit people from making sound business decisions for the simple reason that something is the right thing to do. The green-tinted RoW glasses can be like handcuffs, preventing businesses from implementing healthy long-term strategies because of a compulsion to show short-term tactical dollar returns. Calculating financial returns on specifics, in other words, can be a murky science at best &#8211; and a ball-and-chain at worst.<br />
For years, people have tried to pin the ROI monster on training and development endeavors. And while there are a relatively few instances where you can make an accurate calculation of return on specific training interventions, by and large, training remains an <em>article of faith</em> in business &#8211; you simply know that trained people will do better than folks left to themselves. It&#8217;s the right thing to do.<br />
Companies that are joining the conversation in social media are making a step of faith. Metrics are pretty immature in this field, but: does it make sense to listen to individuals in the marketplace? Is it smart to adopt a long-term strategy of engagement with customers at every level (including social platforms)? Is using every targeted means of communication an (overall) wise thing to do? The answer to all of the above, for many companies, is YES. So what if you can&#8217;t count which blog post or tweet led to which nickel in the bank??<br />
There are some things that you simply believe are productive and effective even if you can&#8217;t prove them with a calculator. And, like Nike, you just do it.<br />
What&#8217;s the ROI of investing an hour or two helping someone out who is on a job hunt? Maybe nothing. Or maybe, that person will open up a fabulous business opportunity downstream because they remember you. If you believe there is a return on helping people, because it&#8217;s right and because that&#8217;s how you&#8217;d like to be treated, then you make that investment without counting the nickels.<br />
The fact is, sales happen and business grows primarily through long-term, multi-channel delivery of customer value and the marketing message. That&#8217;s the brand. It&#8217;s very difficult, in many cases, to calculate the ROI of one or more specific tactics. One incident of pleasing a customer may cost the company a few bucks in direct ROI, but another incident may lead to <a href="http://darmano.typepad.com/logic_emotion/2008/07/disneys-1000000.html">$100,000 of downstream value</a>. <strong>Nordstrom&#8217;s</strong> prospered by going overboard on valuing the customer, even at the cost of a few dollars here and there&#8230;and that&#8217;s the point. They prospered.<br />
What&#8217;s the ROI for <strong>Chick-Fil-A</strong> choosing <a href="http://www.chickfila.com/#closedonsundays">not to open on Sundays</a>, providing a day of rest for all employees? We don&#8217;t know, because it&#8217;s a decision based on doing what&#8217;s right, not based on spreadsheets and metrics. One thing&#8217;s for sure, though &#8211; you don&#8217;t find Chick-Fil-A looking for a financial bailout. Instead, they are growing (and, incidentally, doing a lot of social and charitable good as well). Perhaps more focus on the ROI in doing right should trump some traditional categories of financial calculation &#8211; as we are now painfully aware with the mortgage industry.<br />
If you&#8217;re delivering quality, adding value, communicating effectively, trying new ways to reach people, and creating a growing reputation of excellence in the marketplace, you&#8217;re likely to get a good RoE (Return on Everything). Because all of it matters. Give out creative swag, use good technology, make all your communications top notch, and don&#8217;t get too uptight about calculating ROI for every bit and piece. Measure what you can, but embrace the intangibles also. If you&#8217;re running for the touchdown, you don&#8217;t need to be too distracted with counting the yardage markers!</p>
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